buyout / Capital Transmission
Leveraged Buyout is a financial operation in which a company is acquired using mainly debt. In an LBO, acquirers use leverage to finance the acquisition, using the target company's assets as collateral to secure a large loan. This enables acquirers to limit their initial outlay and benefit from financial leverage to increase the potential return on their investment. LBOs are generally used to acquire profitable companies with leading market positions and solid growth prospects.